China Worries Undermine Shares of Yum Brands

Shares in Yum Brands Inc. fell sharply Friday after the fast-food chain said its sales in China have softened and damped earnings expectations for next year.

The parent company of Taco Bell, KFC and Pizza Hut said late Thursday it expects fourth-quarter sales at outlets open more than a year to contract 4% in China because of weakness in the world's No. 2 economy. That compares with same-store sales growth of 6% in the third quarter...